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The Chip Board Archive 08

Re: What's a Ponzi Scheme? (Niave)

Don has answered your question but now to apply it to the "matrix" at the website . . .

If you look at the website they claim that you are not purchaing the electronics rather you purchase ebooks and you get put in line to get free merchandise.

The idea being that when enough new people buy e-books (the concept of buying e-books allows the scammer to justify in his own head that people actually got what they paid for) the matrix owner sends the "free" electronics to the next person on the list.

So say lets say that the Hard Drive you wanted retails for $200 (I have no idea what it actually costs I'm just making up numbers) the matrix plan is that you buy e-books for $40 (they are worthless trash) and get put in the line for the hard drive. Now if you are the first person on line you wait until 9 more people also pay $40 and sign up for the Hard drive matrix. He now has been paid $400 he buys you a hard drive for $200 and pockets $200. But know he has 9 people waiting for hard drives. In order to get a hard drive for each of them he needs at least 45 new suckers who then wait for 225 new suckers and so on and so on (and the numbers rae worse if the scammer is taking $200 profit on each item). Ideally for the scammer he wants to deliver at the begining to encourage more people to join, but eventually the plan must collapse.

Messages In This Thread

eBay Fraud? or What?. . . (ncr)
Here's the prize! rofl
BUT the shipping was FREE rofl
That's a plus...
rofl Thanks Jay, I'm feeling better already!
Re: Here's the prize! rofl
Re: Here's the prize! rofl
Re: Here's the prize! rofl
Re: Here's the prize! rofl
Re: Here's the prize! rofl
What's a Ponzi Scheme? (Niave)
Her's 18 of his (hugelama1) scams....
Ponzi Scheme
Re: What's a Ponzi Scheme? (Niave)
Thanks Pete & Don
Whadda' Know... I got a $15 Refund!
Re: Whadda' Know... the FTC just got an eMail

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